There are a number of reasons why you might want to borrow money. It could be that there's a new car you've got your eye on, or you need to pay for a wedding. Whatever the circumstances, a personal loan is just one way of getting a lump sum quickly.

Unsure how much you want to borrow, or how much you can expect to pay back? Take a look at our loan calculator to give you a rough idea of your monthly repayments as well as the total amount to repay.

What is an unsecured personal loan?

With an unsecured loan, you don’t have to offer up any kind of collateral (e.g. your house) as a guarantee in order to get the loan. Whilst this could mean less risk to you when borrowing the money, unsecured loans tend to have higher interest rates as a result.

Personal loans typically offer between £1,000 and £35,000, and could be used for purchases such as a new car or some home improvements. They also give you the flexibility to pay back the loan over a number of years.
Most unsecured loans have a fixed interest rate, which means that repayments will stay the same throughout the term.

Before you apply for a loan, take some time to work out how much you want to borrow and how much you can afford to pay back monthly. Before deciding on a loan, it's worth taking your income and expenses into account to be sure you can realistically make the repayments.

To get an unsecured personal loan, you fill in an application form with your chosen lender, who will then check your credit file. Depending on your credit rating, you may be offered a different interest rate (Representative APR) or be limited to a certain amount that you can borrow.

You may also be asked for proof of address and proof of earnings to support your application, so be sure to have these to hand.

The loan application process is one thing, but trying to find and compare the merits of numerous lenders can be a headache. We do the legwork for you and allow you to compare personal loans based on how much you want to borrow and how long you want the loan to last.

Quick and easy comparison of leading UK loan providers

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